Sources:
Shadow Inventory Slowly Fades
Sales of New U.S. Homes Decreased in May for First Time in Three Months
Distressed Sales Drive CRE Prices for Fifth Month: Moody’s
HUD, NeighborWorks Roll Out Emergency for Unemployed
Coalition for Sensible Housing Policy Joins 326 Members of U.S. Congress Calling for Changes to Proposed QRM Regulation
Press Conference on Sensible Housing Policy Part Two
Your Facebook Status: Foreclosed
Today’s News Synopsis:
In this week’s video, Aaron Norris of The Norris Group gives the news of the week in the world of real estate and other big events. Housing Wire reported that the Gross Domestic Product increased at a yearly rate of 1.9% in the first quarter. Debate continues over what qualifies as a Qualified Residential Mortgage, DS News reported. Freddie Mac reported that there has not been much change in mortgage rates.
In The News:
Housing Wire - “First-quarter GDP growth revised up to 1.9%” (6-24-11)
“Real gross domestic product grew at an annual rate of 1.9% in the first quarter, based on a third estimate released by the Commerce Department’s Commerce Department Friday.”
NAHB - “NAHB Study Finds Loan Limit Declines a Discouraging Prospect for Recovering Housing Market” (6-24-11)
“A drop in some mortgage loan limits for the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac and the Federal Housing Administration scheduled to occur on Oct. 1 will reduce housing demand and place downward pressure on home prices in major housing markets, according to a new study from the Economics and Housing Policy Group at the National Association of Home Builders (NAHB).”
DS News - “Industry, Lawmakers Faceoff with Regulators on QRM’s Default Impact” (6-24-11)
“The debate over what constitutes a “Qualified Residential Mortgage” (QRM) is heating up, with a pivotal argument centered around whether or not the proposed QRM stipulations will actually lower the risk of default.”
Housing Wire - “Freddie Mac’s mortgage portfolio falls 3.5% in May” (6-24-11)
“Freddie Mac’s mortgage portfolio decreased at an annual rate of 3.5% in May as government officials continue to discuss how to transition to a mortgage market dominated by private capital.”
Bloomberg - “U.S. Seeks Life Sentence for Farkas” (6-24-11)
“Lee Farkas, the ex-chairman of Taylor, Bean & Whitaker Mortgage Corp., should be sentenced to life in prison for leading a $3 billion fraud involving fake mortgage assets, U.S. prosecutors told a judge in Virginia.”
The Wall Street Journal - “Mortgage Rates Are Little Changed” (6-24-11)
“Mortgage rates changed little for a second straight week, according to the latest survey from Freddie Mac. Mortgage rates generally track Treasury yields, which move inversely to Treasury prices. Rates have slumped for months as yields on Treasurys slid amid economic uncertainty.”
San Francisco Chronicle - “New-home sales fall for first time in three months” (6-24-11)
“Purchases of new U.S. houses fell in May for the first time in three months, showing the industry is struggling to gain momentum.”
CNN Money - “The New American dream home: Prices in 11 cities” (6-24-11)
“The dream has changed. Chastened by the housing collapse, middle-class Americans want a different kind of home these days. The McMansion, with its eight bedrooms, five baths and 10,000 square-feet, is out. A more sensible housing solution is in.”
Looking Back:
According to the CIRB, building permits were pulled for 3,088 housing units in May 2010. Statistics from Freddie Mac showed the 30-year fixed-rate mortgage averaged 4.69% the previous week. Several large banks, such as JP Morgan, hired thousands of mortgage officers in preparation to make more loans. TIGTA estimateed the IRS awarded $26.7 million to fraudulent home buyer tax credit claims.
For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.
About Bruce Norris
Bruce Norris is an active investor, hard money lender, and real estate educator with over 30 years experience. Bruce has been involved in over 2,000 real estate transactions as a buyer, seller, builder and money partner.
Tags: Bean & Whitaker, Ben Bernanke, Bloomberg, bruce norris, Coalition for Sensible Housing Policy, Commerce Department, Dodd-Frank Reform Act, Economics and Housing Policy Group, Federal Reserve, FHFA, Frank Nothaft, freddie mac, gross domestic product, gse, Lee Farkas, McMansion, mortgage, NAHB, QRM, Taylor, the norris group